Mr. Chairman,

1. I have the honour to speak on behalf of the European Union. The Candidate Countries Croatia, The Former Yugoslav Republic of Macedonia?and Turkey, the Countries of the Stabilization and Association Process and potential candidates Albania, Bosnia and Herzegovina, Montenegro, and Serbia, the EFTA countries Iceland and Liechtenstein, members of the European Economic Area, as well as Moldova and Ukraine, associate themselves with this statement.

Mr. Chairman,

2. On December 23rd, 2006 the United Nations Security Council adopted Resolution 1737 and requested a report from the Director General within 60 days to be sent in parallel to the UN Security Council and to the IAEA Board of Governors for their consideration. Since the last Board of Governors, United Nations Security Council Resolution 1737 has reaffirmed as mandatory the suspension of enrichment related activities in Iran and has also rendered mandatory Iran's cooperation with the IAEA.

3. The European Union has taken note of the Director General's report of February 22nd, 2007 as contained in document GOV / 2007 / 8.

We would like to thank the Director General and the Secretariat for their continuing impartial efforts in trying to verify the peaceful nature of the Islamic Republic of Iran's nuclear programme.

4. The European Union deplores the fact that the Islamic Republic of Iran has not complied with the terms of United Nations Security Council Resolution 1737, as confirmed in the Director General's report (GOV / 2007 /8). The EU notes in particular that Iran has failed to suspend all enrichment and enrichment-related activities and appears determined to pursue these activities on an even larger scale.

Since November 2006 Iran has several times fed UF6 into cascades in the Pilot Fuel Enrichment Plant (PFEP) and produced UF6 enriched to a level below 5%. Iran has informed the Agency about its intention to install 18 cascades and to bring them gradually into operation by May 2007. This is unacceptable as it would be another violation of UNSC Resolutions 1696 and 1737 and would go against the numerous requests of the Board of Governors.

5. The EU recalls that all enrichment related activities in Iran, whether under surveillance or not, must be suspended under United Nations Security Council Resolution 1737. The European Union underlines that in all cases Iran must implement without delay all verification measures which the Agency deems necessary. The European Union therefore regrets that to date only interim verification agreements could be implemented at the fuel enrichment plant (FEP).

Mr. Chariman,

6. The European Union also deplores the fact that civil construction at the IR-40 Reactor in Arak and the operation of the Heavy Water Production Plant are ongoing.

7. The European Union is concerned that additional information which the Agency has received with regard to the contamination of components does not fully explain the presence of some of the LEU & HEU particles.

Verification of the correctness and completeness of The Islamic Republic of Iran's declarations in this regard can progress only with a full understanding of the scope and chronology of Iran's centrifuge enrichment programme, which can only be achieved through the implementation by Iran of the Additional Protocol and required measures. The European Union calls again on the Islamic Republic of Iran to provide the Agency with all requested information in this regard, and especially, to allow further environmental sampling of equipment & materials related to the Physics Research Center (PRC) as well as interviews with one of the former heads of the PRC.

8. The European Union notes with regret that the Islamic Republic of Iran has neither provided new information on its P-1 and P-2 centrifuge programmes nor provided a copy of the 15-page document, which describes the procedures for the reduction of UF6 to uranium metal, nor provided sufficient information to verify the completeness and correctness of the Islamic Republic of Iran's declarations concerning its Plutonium Experiments.

Mr Chairman,

9. The European Union is concerned about the decision of the Islamic Republic of Iran to de-designate 38 inspectors from the list of already designated inspectors for verification and inspections in the Islamic Republic of Iran and to refuse 10 new inspectors designated by the Secretariat. This decision, as mentioned by the Director General, will lead to diminished operational flexibility and less efficient use of resources. The European Union calls upon the Islamic Republic of Iran to respond positively to the Director General's request to reconsider its decision.

10. The European Union deplores furthermore that the Islamic Republic of Iran has not agreed to any of the required transparency measures, which are essential for the clarification of certain aspects of the scope and nature of its nuclear programme, including information about alleged studies related to the so-called Green-Salt Project, to high explosives testing and to the design of a missile re-entry vehicle.

11. The Islamic Republic of Iran has reluctantly granted access to declared nuclear material and facilities and has provided some of the required nuclear material accountancy reports so that the Agency was able to verify the non-diversion of declared nuclear material in the Islamic Republic of Iran.

Nevertheless the Agency remains unable to make further progress in its efforts to verify fully the past development of the Islamic Republic of Iran's nuclear programme and certain aspects of its scope and nature. The European Union calls again upon the Islamic Republic of Iran to ratify the Additional Protocol and to implement the necessary transparency measures in order to enable the Agency to verify the absence of undeclared nuclear material and activities in the Islamic Republic of Iran.

12. It is the view of the European Union that the Director General's report clearly demonstrates the Islamic Republic of Iran's disregard of the requirements of the International Community as expressed in the unanimous and legally binding United Nations Security Council Resolution 1737. The European Union reaffirms its support to the UNSC process and underlines that the Security Council has expressed its intention in Resolution 1737 to adopt further appropriate measures under Art. 41 Chapter VII of the United Nations Charter should Iran fail to comply.

13. At the same time the European Union reaffirms its continuous support for efforts to find a negotiated long-term solution of the Iranian nuclear issue. A comprehensive offer is still on the table and the door to negotiations remains open. The inalienable right of Iran to the peaceful use of nuclear energy in conformity with Article I and II of the NPT has been reaffirmed repeatedly by the European Union, as well as by the Board of Governors and the UN Security Council. The European Union therefore seizes this opportunity to call once more upon the Islamic Republic of Iran to open the way for negotiations by complying with the requirements of United Nations Security Council Resolution 1737.

Thank you, Mr. Chairman.